Türkiye's state-owned Turkish Petroleum Corporation (TPAO) and Hungary’s MOL will begin oil and natural gas exploration and production at two sites in Hungary, according to a newly signed deal.
"Bilateral cooperation between Türkiye and Hungary continues at a very high level across many sectors, with energy standing out as one of the most significant areas of partnership”, said Turkish Energy and Natural Resources Minister Alparslan Bayraktar during a press conference along with Hungarian Foreign Minister Peter Szijjarto following a signing ceremony in Budapest on Wednesday.
Noting that this partnership spans many years, Bayraktar said: "Today marked a particularly important milestone. We witnessed the signing of what could be described as Turkish Petroleum’s first investment in Europe."
"The cooperation between TPAO and Hungary’s MOL is set to grow stronger in Hungary and hopefully continue in the years ahead," he said, adding it is also expected to expand further in third countries across various regions, from Africa to Asia and the Middle East.
Both countries face similar challenges, as Türkiye and Hungary rely heavily on imported energy resources, the Turkish minister noted.
Referring to Monday’s blackout in Western Europe, Bayraktar highlighted the critical importance of energy security.
“To ensure energy security, we must continue strengthening and expanding our cooperation,” he said.
Budapest puts pressure on the EU to restore Russian gas transit through Ukraine warning that without action it will veto the next round of sanctions on Russia.
Hungary’s energy security
In an increasingly uncertain world marked by shifting trade policies and rising customs tariffs, energy security is "more vital" than ever, he added.
Bayraktar also highlighted Türkiye’s first gas export to a non-neighbouring country through a deal between Turkish Petroleum Pipeline Corporation (BOTAS) and Hungary’s MVM in 2023.
“In line with the strategic decision we made together, we believe BOTAS and MVM can play a significant role in gas trade and supply not only in Hungary but also across Europe,” he added.
Hailing the recent deal involving a Turkish company in the consortium to build a natural gas power plant in Hungary, Bayraktar said that Türkiye remains fully committed to strengthening cooperation in oil and gas, electricity and nuclear energy.
'Hungary’s energy security is no longer possible without Türkiye' Hungarian Foreign Affairs and Trade Minister Peter Szijjarto said the two countries have reached a new milestone in energy cooperation.
'Concession Agreement'
“Today, Hungary’s energy security is no longer possible without Türkiye,” he said.
“This year alone, we received a total of 2.5 billion cubic meters (bcm) of natural gas. If the TurkStream pipeline hadn’t been built in time, we would have faced serious problems after the Ukraine crisis,” he added.
TurkStream, the pipeline commissioned in 2020 under a Türkiye-Russia deal, transported 44.4 bcm of gas to Türkiye and 59.8 bcm to Europe between 2020 and 2024.
Szijjarto added that the deal between TPAO and MOL would mark the beginning of oil production cooperation not only in Hungary but also in third countries.
Meanwhile, Bayraktar said in a post on X that TPAO and MOL "gained the right to explore hydrocarbons in the Buzsak and Tamasi onshore blocks of Hungary."
"With the 'Concession Agreement' we signed in Budapest today, we formalized our partnership.
"We wish that the signatures will open the door to new opportunities and be beneficial for both countries," he added.
